U.S Home Sales: Still Falling, Falling, and Falling

March 24, 2011 / Russell Legato, Residential Property Analyst

Home sales in the United States drop 17 percent in February to a 250,000 seasonally adjusted annual pace, according to the Commerce Department’s report release Wednesday. New home sales unexpected declined last month, which resulted to the lowest median home price since December 2003 as supply of new homes in the market records the highest in six months.

U.S Home Sales: Still Falling, Falling, and Falling

Inline with home sales, the million-dollar home industry are starting attain a much stable pace as luxury homes started to sell again, especially in Southwest Ohio. Home sales rose 16 percent of homes priced at $500,000 and above in 2010.

But for the entire country, according to median estimate by economist of about 290,000 pace for new homes, only 250,000 were recorded last month — showing that the housing decline continues to falter since the government’s main effort to support the housing market ended last fall — when the home buyer subsidy expired.

Home price also fell a record low 8.9 percent or $202,100 in February from $221,900 a year earlier compared to the same period in 2010.

The Commerce Department said that new single family home sales dropped 16.9 percent — the lowest since the department records began in 1963.

After the report was publicized, the U.S. stock markets were down by 0.6 percent.

Home sales in February sunk to a record low in three of the

four regions in the U.S — home sales decline 15 percent in the West, 28 percent in the Midwest, and 57 percent decline in the Northeast, which stunned economists who had expected the regions to increase up to a 290,000 unit rate.

Previously owned home sales also dropped by 9 percent in February, according to the recent report from the National Association of Realtors, as median home price declined to a to a 9-year-low, and over-supply of empty homes increased

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